As of the end of 2019, Amazon boasted a whopping 112 million Prime users in America and considering the record influx in online shopping this year; we can only imagine how many prime users America has now, let alone those with regular Amazon buyer accounts.
There are, on average, 2.5 million sellers on Amazon, which means this e-commerce company must be doing something right! However, nothing is always as good as it looks; there are cons to everything.
This piece will discuss all aspects of selling on Amazon and what to look out for!
Amazon Have Strict Policies
When you sell through Amazon, you do not have full autonomy over your e-commerce store. Excessive complaints, returns, or low conversion rates can encourage Amazon to close down your business account, which can be extremely frustrating, with lots of effort going to waste. If this does happen, it isn’t necessarily the end game. There are companies such as riverbendconsulting.com which can help professionally appeal to Amazon’s actions.
Amazon Can Help Generate More Sales
With its millions upon millions of users, it is no surprise that the customer base is a very attractive prospect for businesses. Generally, more customers mean more chance of sales, which is why most businesses will open a business account to allow them to have access to the user base.
Amazon Offers Businesses Credibility
Amazon is thought of as a trusted e-commerce marketplace, where they promise excellence to the user in all points of a transaction, and the quality is held to a particular standard.
Not only because of its glowing reputation, but customers are also much more likely to buy from here just because they have heard of it. Amazon is a household name, which holds some significant weight when it comes to consumers and their shopping habits. This is especially true for customers in countries that are not fully established with online shopping.
Low Marketing Costs
The customers are already there! Waving their card in their hand, they already know what they want, they are searching for it and are ready to hand over their hard-earned cash. This means much less money has to be spent on marketing to drive the customers to the actual site. Because of how saturated Amazon is with products and sellers, marketing tactics that can differ from other brands or businesses can put you in the lead to getting that sale.
However – also because of how saturated Amazon is with products and sellers it can mean businesses can fall behind if they do not have a long-term strategy on pricing. The likelihood that you will be selling products that are similar or the same as other merchants is high, and Amazon will determine itself which product might be the best fit for the user if there is more than one search result.
The algorithm for buying in Amazon with quick buttons – aka “Buy Now” is constantly changing, so it is best to focus on a price strategy and keep an eye on competitors.